Tag: 04

Spot gold rose 0.4 percent to $1,290.84 per ounce as at 0310 GMT, heading for a fourth straight weekly gain. U.S. gold futures were up 0.3 percent at $1,290.8 per ounce. “The weaker dollar and a more dovish Fed are the two most alluring factors for gold,” said Stephen Innes, APAC trading head at OANDA. “The (gold) market is holding back a little as they are concerned the equity market could rally significantly on trade war truce,” Innes said. Palladium 0.4 percent to $1,326.75 per ounce, and was

Gold prices climbed on Friday as the dollar fell back on expectations the U.S. central bank may pause interest rates hikes if the U.S. economy slows this year, while investors awaited news on progress in the Sino-U.S. trade talks.

Spot gold rose 0.4 percent to $1,290.84 per ounce as at 0310 GMT, heading for a fourth straight weekly gain. The yellow metal is up 0.4 percent so far this week.

U.S. gold futures were up 0.3 percent at $1,290.8 per ounce.

“The weaker dollar and a more dovish Fed are the two most alluring factors for gold,” said Stephen Innes, APAC trading head at OANDA.

“There are concerns for the U.S. economy to slow down, perhaps towards the end of 2019 and into 2020, so the markets are pricing rate cuts.”

The dollar slipped against other major currencies, after having rebounded from three-month lows on Thursday following Federal Reserve Chairman Jerome Powell’s comment which suggested the central bank is not done tightening monetary policy just yet.

A partial U.S. government shutdown extended into its 20th day and provided little comfort to the U.S. currency, after President Donald Trump threatened on Thursday to use emergency powers to bypass U.S. Congress to pay for a wall on the U.S.-Mexico border.

“The (gold) market is holding back a little as they are concerned the equity market could rally significantly on trade war truce,” Innes said.

Asian equities inched up to one-month highs, but the rally’s momentum slowed partly as investors sought more clarity on whether the United States and China could make headways on their talks on trade as well as intellectual property rights.

“Once trade issues are resolved, the dollar is likely to remain suppressed, losing its appeal as a safe haven…Gold on the other hand would stand to benefit.”

Also aiding gold’s upward trend are concerns of weakening global growth, further emphasized by somber data out of Switzerland and France on Thursday.

“Gold will likely approach the short term resistance of $1,310 per ounce, from where some profit-booking can be seen,” said Religare Broking’s Sachdeva, adding that near term support can be seen at $1,275 per ounce.

Spot gold is expected to retest a resistance at $1,299 per ounce, with a good chance of breaking above this level and rising further to $1,311, according to Reuters technical analyst Wang Tao.

Palladium 0.4 percent to $1,326.75 per ounce, and was up about 2 percent for the week.

Silver climbed 0.6 percent to $15.65. However, it was poised to snap three sessions of weekly gains.

U.S. consumer spending increased by the most in seven months in October, but underlying price pressures slowed, with an inflation measure tracked by the Federal Reserve recording its smallest annual increase since February. Data for September was revised down to show spending rising 0.2 percent instead of the previously reported 0.4 percent gain. Economists polled by Reuters had forecast consumer spending increasing 0.4 percent in October. When adjusted for inflation, consumer spending advanced

U.S. consumer spending increased by the most in seven months in October, but underlying price pressures slowed, with an inflation measure tracked by the Federal Reserve recording its smallest annual increase since February.

The Commerce Department said on Thursday consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.6 percent last month as households spent more on prescription medication and utilities.

Data for September was revised down to show spending rising 0.2 percent instead of the previously reported 0.4 percent gain.

Economists polled by Reuters had forecast consumer spending increasing 0.4 percent in October. When adjusted for inflation, consumer spending advanced 0.4 percent, also the biggest gain in seven months and pointing to a solid pace of consumption at the beginning of the fourth quarter.

Despite the strong consumer spending, there are indications that economic growth is slowing. Data this month suggested a moderation in business spending on equipment, a deterioration in the trade deficit as well as further weakness in the housing market. Growth estimates for the fourth quarter are currently around a 2.5 percent annualized rate. The economy grew at a 3.5 percent pace in the July-September quarter.

Gold prices fell to a more than two-week low on Wednesday as Asian stocks gained and the dollar touched multi-month highs on upbeat U.S. economic data. The yellow metal, however, remained on track to end a six-month losing streak, the longest since a period that finished in early 1997. A stronger dollar and a recovery in equities are putting pressure on gold today, said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong. A stronger dollar makes dollar-denominated bullion more exp

Gold prices fell to a more than two-week low on Wednesday as Asian stocks gained and the dollar touched multi-month highs on upbeat U.S. economic data.

The yellow metal, however, remained on track to end a six-month losing streak, the longest since a period that finished in early 1997.

Spot gold was 0.4 percent lower at $1,217.26 an ounce at 0419 GMT, having touched its lowest since Oct. 12 at $1,215.35 earlier in the session. It has risen about 2.4 percent so far in October, the biggest monthly gain since January.

U.S. gold futures fell 0.5 percent to $1,219.3 an ounce.

A stronger dollar and a recovery in equities are putting pressure on gold today, said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

“The market would now be focusing on the upcoming U.S. non-farm payroll data due on Friday and the U.S. mid-term elections next week for a direction,” Leung added.

The midterm elections, on Nov. 6, will determine whether the Republican or Democratic party controls the U.S. Congress.

In the wider markets, Asian stocks pulled away from 20-month lows on Wednesday, thanks to a rebound on Wall Street, although investors remained cautious.

The dollar hovered near 16-month highs versus a basket of major rivals after gaining overnight as traders bet on the relative outperformance of the U.S. economy and continued rate increases by the Federal Reserve.

“If the dollar continues to march higher, especially against its emerging markets peers, this will put some pressure on gold,” said Hussein Sayed, Chief Market Strategist at FXTM.

“As long as inflation doesn’t become a real threat or equities plunge much further from current levels, many investors will prefer yielding instruments than investing in gold, and that’s what the dollar is providing.”

Gold prices have slipped about 11 percent from their April peak as investors turned to the dollar as a safe-haven as the trade war unfolded against a backdrop of higher U.S. interest rates.

A stronger dollar makes dollar-denominated bullion more expensive for users f other currencies while higher interest rates reduce the attraction of non-yielding gold.

Spot gold may break a support at $1,217 per ounce and fall to the next support at $1,208, as suggested by a retracement analysis, said Reuters technical analyst Wang Tao.

Among other precious metals silver was down 0.4 percent at $14.40 per ounce after touching more than two-week low of $14.31.

The German economy picked up more steam than expected in the second quarter, driven by higher household and state spending, data showed on Tuesday, suggesting that Europe’s biggest economy is powering ahead despite trade-related business uncertainties. The office also revised up the quarterly growth rate for the first three months of the year to 0.4 percent from 0.3 percent. “Despite all of the prophecies of doom, the upswing is not only alive; it’s also kicking,” Bankhaus Lampe economist Alexan

The German economy picked up more steam than expected in the second quarter, driven by higher household and state spending, data showed on Tuesday, suggesting that Europe’s biggest economy is powering ahead despite trade-related business uncertainties.

The office also revised up the quarterly growth rate for the first three months of the year to 0.4 percent from 0.3 percent.

“Despite all of the prophecies of doom, the upswing is not only alive; it’s also kicking,” Bankhaus Lampe economist Alexander Krueger said.

“For the time being, the upswing is unlikely to be stalled by the global trade dispute or overheating,” Krueger said. But he added that the conflict with the United States over tariffs was clouding the outlook for the second half of the year.

U.S. business inventories rose steadily in May and sales recorded their biggest increase in eight months, government data showed on Monday. The Commerce Department said business inventories increased 0.4 percent after an unrevised 0.3 percent gain in April. Retail inventories increased 0.4 percent in May as reported in an advance estimate published last month. Retail inventories rose 0.4 percent in April. Auto inventories rose 0.8 percent in April.

U.S. business inventories rose steadily in May and sales recorded their biggest increase in eight months, government data showed on Monday.

The Commerce Department said business inventories increased 0.4 percent after an unrevised 0.3 percent gain in April. May’s rise in inventories, which are a key component of gross domestic product, was in line with economists’ expectations.

Retail inventories increased 0.4 percent in May as reported in an advance estimate published last month. Retail inventories rose 0.4 percent in April.

Motor vehicle inventories increased 0.9 percent in May and not 1.0 percent as reported last month. Auto inventories rose 0.8 percent in April.

Retail inventories excluding autos, which go into the calculation of GDP, edged up 0.1 percent in May as reported last month. They gained 0.2 percent in April.

The Commerce Department said on Thursday retail sales jumped 0.8 percent last month, the biggest advance since November 2017. Data for April was revised up to show sales rising 0.4 percent instead of the previously reported 0.2 percent gain. Economists polled by Reuters had forecast retail sales rising 0.4 percent in May. Retail sales in May increased 5.9 percent from a year ago. There were also increases in online retail sales, but receipts at furniture stores fell 2.4 percent, the largest drop

U.S. retail sales increased more than expected in May as consumers bought motor vehicles and a range of other goods even as they paid more for gasoline, the latest indication of an acceleration in economic growth in the second quarter.

The Commerce Department said on Thursday retail sales jumped 0.8 percent last month, the biggest advance since November 2017. Data for April was revised up to show sales rising 0.4 percent instead of the previously reported 0.2 percent gain.

Economists polled by Reuters had forecast retail sales rising 0.4 percent in May. Retail sales in May increased 5.9 percent from a year ago.

Excluding automobiles, gasoline, building materials and food services, retail sales increased 0.5 percent last month after an upwardly revised 0.6 percent increase in April. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. They were previously reported to have risen 0.5 percent in April.

The Federal Reserve raised interest rates on Wednesday for the second time this year. The U.S. central bank forecast two more rate hikes for 2018. The Fed said “economic activity has been rising at a solid rate” and “growth of household spending has picked up.”

The strong retail sales report added to data ranging from the labor market to manufacturing and trade in suggesting the economy was regaining momentum in the second quarter after growth slowed at the start of the year amid a sharp step-down in consumer spending.

Growth estimates for the April-June quarter are as high as a 4.6 percent annualized rate. The economy grew at a 2.2 percent rate in the first quarter.

In May, auto sales rose 0.5 percent after gaining 0.2 percent in April. Receipts at service stations surged 2.0 percent, reflecting higher gasoline prices. Prices at the pump have risen by 15.5 percent this year, according to U.S. Energy Information Administration data. Expensive gasoline, if sustained, could pull spending away from other categories.

Sales at building material stores rebounded 2.4 percent last month after declining 0.8 percent in April. Receipts at clothing stores surged 1.3 percent, the largest gain since March 2017. There were also increases in online retail sales, but receipts at furniture stores fell 2.4 percent, the largest drop since December 2013.

Sales at restaurants and bars jumped 1.3 percent, the biggest gains since January 2017.

U.S. industrial production rose 0.5 percent in March as a rebound in utilities from the prior month’s weather-related decline offset sluggish output of machinery and food products. Economists polled by Reuters had forecast a 0.4 percent rise in industrial production. Production rose 0.4 percent for long-lasting goods, although machinery output slipped 0.4 percent. In the 12 months through March overall industrial output rose 4.3 percent. The percentage of industrial capacity in use rose 0.3 perc

U.S. industrial production rose 0.5 percent in March as a rebound in utilities from the prior month’s weather-related decline offset sluggish output of machinery and food products.

The U.S. Federal Reserve’s measure of the industrial sector comprises manufacturing, mining, and electric and gas utilities.

Economists polled by Reuters had forecast a 0.4 percent rise in industrial production. Output for February was revised upward to an increase of 1.0 percent from the previous 0.9 percent gain.

The nation’s factories produced only 0.1 percent more in March than in February, with output falling for goods not designed to be long-lasting like food products and textiles. Production rose 0.4 percent for long-lasting goods, although machinery output slipped 0.4 percent.

The utilities index jumped 3 percent during the month, bouncing back from a 5.0 percent fall in February which was driven by warmer-than-normal temperatures.

In the 12 months through March overall industrial output rose 4.3 percent.

The percentage of industrial capacity in use rose 0.3 percentage point in March to 78.0 percent, the highest level in three years.

Fed officials look to capacity use as a signal for how much further the economy can accelerate before sparking higher inflation.

A composite index of leading economic indicators posted gains that exceeded expectations in February. The Conference Board’s Leading Economic Index rose 0.6 percent to 108.7, marking the fourth straight month of gains for the composite index and exceeding economists’ expectations of a 0.4 percent gain. The measure, which measures 10 key metrics of economic movement, jumped 0.8 percent to 108.1 in January, which followed a gain of 0.7 percent in December. The index is used to forecast global econ

A composite index of leading economic indicators posted gains that exceeded expectations in February.

The Conference Board’s Leading Economic Index rose 0.6 percent to 108.7, marking the fourth straight month of gains for the composite index and exceeding economists’ expectations of a 0.4 percent gain.

The measure, which measures 10 key metrics of economic movement, jumped 0.8 percent to 108.1 in January, which followed a gain of 0.7 percent in December.

“The U.S. LEI rose again, despite a sharp downturn in stock markets and weakness in housing construction in February,” said Ataman Ozyildirim, the Conference Board’s director of business cycles and growth research.

While Ozyildirim said the strong recent showings indicate “robust economic growth throughout 2018,” he cautioned that the U.S. Federal Reserve’s plans to raise interest rates could affect aspects of the metric.

“While the Federal Reserve is on track to continue raising its benchmark rate for the rest of the year, the recent weakness in residential construction and stock prices — important leading indicators — should be monitored closely,” Ozyildirim said.

The index is used to forecast global economic trends and take a pulse on the U.S. economy. The Conference Board, a business research association, determines a composite value based on 10 key metrics, including manufacturers’ new orders, stock prices and average weekly unemployment claims, to create the composite value.

The Labor Department said on Thursday its producer price index for final demand increased 0.4 percent last month after being unchanged in December. In the 12 months through January, the PPI rose 2.7 percent after advancing 2.6 percent in December. Economists polled by Reuters had forecast the PPI rising 0.4 percent last month and increasing 2.5 percent from a year ago. A key gauge of underlying producer price pressures that excludes food, energy and trade services jumped 0.4 percent last month.

U.S. producer prices accelerated in January, boosted by strong gains in the cost of gasoline and health care, offering more evidence that inflation pressures were building up.

The Labor Department said on Thursday its producer price index for final demand increased 0.4 percent last month after being unchanged in December.

In the 12 months through January, the PPI rose 2.7 percent after advancing 2.6 percent in December. Economists polled by Reuters had forecast the PPI rising 0.4 percent last month and increasing 2.5 percent from a year ago.

The Commerce Department said on Monday consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.4 percent last month after an upwardly revised 0.8 percent increase in November. Economists polled by Reuters had forecast consumer spending increasing 0.4 percent in December after a previously reported 0.6 percent rise in November. When adjusted for inflation, consumer spending rose 0.3 percent in December. Robust consumer spending helped to offset the drag f

U.S. consumer spending rose solidly in December as demand for goods and services increased, but the increase came at the expense of savings, which dropped to a 10-year low in a troubling sign for future consumption and economic growth.

The Commerce Department said on Monday consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.4 percent last month after an upwardly revised 0.8 percent increase in November.

Economists polled by Reuters had forecast consumer spending increasing 0.4 percent in December after a previously reported 0.6 percent rise in November. When adjusted for inflation, consumer spending rose 0.3 percent in December.

The figures were included in the advance fourth-quarter gross domestic product report published on Friday. Consumer spending accelerated at a 3.8 percent annualized rate in the October-December period, the fastest in three years, after rising at a 2.2 pace in the third quarter.

Robust consumer spending helped to offset the drag from trade and inventories on the economy, which grew at a 2.6 percent rate in the fourth quarter. GDP increased at a 3.2 percent pace in the third quarter.

Personal income rose 0.4 percent last month after advancing 0.3 percent in November. Wages increased 0.5 percent last month. Savings fell to $351.6 billion in December, the lowest level since December 2007, from $365.1 billion in the prior month.